Brex, the fintech company co-founded by Brazilian entrepreneurs Pedro Franceschi and Henrique Dubugras, is being acquired by Capital One. So the acquisition price will be far below Brex’s all-time high valuation. Yet this acquisition signals an important inflection point for Brex. As of its 2022 Series D-2 funding round, the company was valued at $12.3 billion. The current valuation, at $20 billion, is less than half of that. This incredible discount has contributed to very high levels of early backer satisfaction.
Founded in 2017, Brex started from a lightning pitch that focused on a virtual reality idea. Each of the founders had left Stanford University as freshmen to pursue their entrepreneurial addiction. As soon as they got accepted into Y Combinator’s winter 2017 batch, things started taking off. Over the past several years, Brex has pivoted to become an enterprise player in the fintech space. They currently hold nearly $13 billion in deposits distributed across their partner banks and money-market vehicles.
Brex has experienced incredible traction, crossing the $1 billion annualized recurring revenue mark and signing up over 50,000 customers. The business has vigorously pursued opportunities, growing their international work to comprise 35 percent of all work the company pursues. In August 2025, it received a license to operate in the European Union and is currently preparing to expand into the UK market.
The acquisition by Capital One does come as a fascinating time for the whole fintech space. Financial institutions are eager to innovate and bring tech into the fold. Brex’s unconventional approach is its secret sauce and it’s what uniquely positions them for the next era of growth. Pedro Franceschi will continue to lead the company post-acquisition as CEO, ensuring that the innovative spirit of Brex remains intact.
In 2024, Henrique Dubugras removed himself from day-to-day operations to focus on being the board chairman. He underscored how strategically important an acquisition this is for both Brex and Capital One. The relationship is designed to improve offerings for customers and maximize Capital One’s vast resources to scale operations efficiently.
Micky Malka, a board member and our largest Brex shareholder, was excited about the transaction.
“We’re excited for the team, which was one of the youngest YC teams at the time. I’ve known [the founders] since they were 16. Capital One will be a great partner, and their ability to scale [as part of the bank] is good for America.” – Micky Malka
Brex is counting on its close relationship with Capital One to provide the capital and infrastructure necessary for an accelerated growth trajectory. All the while, Brex continues to be committed to providing best-in-class, cutting-edge financial solutions. This acquisition reflects a broader trend within the financial services sector where established players are seeking partnerships with agile fintech companies to enhance their product offerings and customer experiences.
